Kodiak Oil (KOG)

During July 2009,
Kodiak closed on a previously announced agreement to acquire additional interests
in the Tall Bear prospect area.
Separately, the Company entered into a joint venture arrangement with a
private industry partner pursuant to which Kodiak conveyed certain of its
leasehold to the joint venture partner resulting in a sell-down of 3,300 net
acres to Kodiaks leasehold in the Charging Eagle and Tall Bear prospects,
collectively referred to as the Twin Buttes area. After netting out the costs
to acquire the additional interests in the Tall Bear prospect area, Kodiak
realized $1.85 million in cash from the sell-down, and will pay 50% of the
first five wells drilled in the Twin Buttes area for its 60% WI, proportionally
reduced.

We are delighted
to have our new partner participating with us in drilling the southeastern
block of our FBIR leasehold, said Mr. Peterson. As the southern block represents about 30%
of our leasehold, these are important delineation wells. By selling down certain of our interest, it
maintains the Kodiak working interest in the 50%-60% range, which allows us to
operate while adhering to our capital expenditure budget.